1983 (8) TMI 129

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at he was earning income from Towell Construction Company in Riyadh. He filed the salary certificate before the ITO. The ITO disallowed the claim made by the assessee on deduction u/s 80RRA 3. On appeal before the AAC none appeared and the AAC decided the matter ex parte. The AAC ultimately agreed with the finding of the ITO on the ground that it is not known whether the income was received by the assessee in the foreign currency or whether the assessee had rendered continuous service outside India for a period exceeding 36 months. He further observed that it is also not known whether the assessee was in the service of the Central Government or the State Government. As against this order of the AAC, the assessee is in appeal before us. 4.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e prescribed authority. He filed before us a Paper Book containing order of appointment by Towell Construction Company and the passport issued by the government of India and the visa issued by the Saudi Arabia. On the basis of the aforesaid documents, he contended before us that the assessee has fulfilled the requirements u/s 80RRA and the assessee being a technician is entitled for a deduction and the lower authorities have wrongly disallowed the claim of the assessee. He read out from the book "Taxmann's Direct Taxes Law and Practice 1982-83, at page 500, wherein it is mentioned in the commentary as under: "The contract of service must be approved in this behalf by the Central Government or the prescribed authority. It may be noted that ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ore us that all the requirements having been satisfied by the assessee u/s 80RRA, he is entitled for deduction under the aforesaid section and the lower authorities are not justified in disallowing the claim of the assessee. 5. The learned departmental representative, on the other hand, contended before us that in the absence of certificate from the prescribed authority, he is not entitled to claim deduction u/s 80RRA 6. We have carefully considered the facts and circumstances of the case and the submissions on either side. On a perusal of the orders of the ITO and the AAC, it is quite clear that both the lower authorities have not properly appreciated the facts and circumstances of the case and the material on record. From the Paper Book....